This is an actively managed bond ETF that selects US municipal bonds with positive environmental and social impact. It applies sustainability criteria while seeking interest income that is exempt from federal tax.

It suits income-oriented investors who want the tax benefits of municipal bonds while also incorporating a sustainability perspective.

The ETF is run by JPMorgan using an active management approach.

The fund actively selects US municipal bonds that have positive environmental and social impact. While seeking tax-advantaged interest income exempt from federal tax, it takes an active approach: adjusting credit quality and maturity ranges and picking securities based on sustainability criteria.

• Municipal bond selection that reflects sustainability criteria
• A combination of federal tax exemption and active management

Assets under management (AUM) stand at $396.3M, and the expense ratio is 0.18% per year.

Compared with MUB and VTEB, which invest in municipal bonds without sustainability criteria, the main points of comparison are the sustainability screening standards and active management.

Municipal bond ETFs are driven by the direction of interest rates. Prices are typically pressured when rates rise and tend to strengthen when rates fall. Because of its sustainability screening and active management, the fund's composition and performance may diverge in part from a standard municipal bond index.

Fund flows into municipal bonds vary with demand for tax benefits and with the interest rate cycle, and when interest in sustainable investing rises, money sometimes shifts toward related products. It is also worth watching how performance varies with the interest rate and credit environment.

Federal tax savings and the sustainability focus are its strengths, while interest rate risk, the lack of state tax exemption, and tracking difference are points to consider.

For nationwide municipal bond exposure without sustainability criteria, direct substitutes include MUB and VTEB, and for broad municipal diversification, products such as TFI are also worth comparing. To keep maturities short, you can also consider short-term municipal products such as SUB. The three products shown in the table, MUB, VTEB, and JMUB, differ in that they follow passive and active municipal bond strategies, respectively, and are managed without sustainability criteria. This ETF's distinguishing factor is its active management of municipal bonds that reflects sustainability criteria.

Here are the points to review before investing in JMSI. The tax savings and sustainability focus are attractive, but interest rate risk, the tax rules of your state of residence, and tracking difference should be confirmed in advance. It is also a good idea to compare it with standard municipal bond products.

Rising interest rates, the state tax burden based on your residence, and tracking difference from sustainability screening are the main variables for short-term performance, and the screening can make the fund's composition differ from a standard municipal bond index. Even investment-grade municipal bonds can post losses during sharp rate increases.

It is a suitable candidate for income-oriented investors who want to add a sustainability perspective to the tax benefits of municipal bonds. If you want municipal bonds without sustainability criteria, products such as MUB and VTEB are worth considering, and if you want sustainable municipal bonds, it is advisable to compare this fund alongside them before choosing.